Business investment in deprived areas: Creating the conditions

Abstract

Increasing business activity in deprived areas is a key part of the current UK Government's efforts to address disadvantage. But policies aimed at achieving this have had mixed success. The relationship between deprivation and business development is not straightforward. There are a number of risks associated with the public sector trying to divert business investment from more prosperous areas and regions into less prosperous regions and areas. Using a market failure approach to understanding and addressing the barriers to business investment in deprived areas mitigates these risks.